Title deeds backlog eradication: Department of Human Settlements progress report

Human Settlements, Water and Sanitation

30 August 2016
Chairperson: Ms N Mafu (ANC)
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Meeting Summary

The Department of Human Settlements (DHS) reported that the target for eradicating the pre-1994 backlog in the 2014/15 2015/16 year is 14 370, and the post 1994 target is 102 746. The title deeds eradication target for the 2016/17 year is 332 789 but the actual output, as of March 2016, is 170 887. The major causes of the backlog related to delays with the registration of new townships, the issuing of clearance of certificates and collection of documents, and the vesting and transfer of state land. Figures were then given for the delivery of title deeds, which spread across both pre- and post-1994 stock. Overall, 60% of the planned targets for all nine provinces have been achieved for the first quarter of 2016/17. Three provinces - Eastern Cape, Free State and the Northern Cape - have exceeded their targets for the first quarter. The position in different provinces was outlined, indicating also that where some provinces had not managed to reach targets in the first quarter, they had exceeded targets in the following quarter, and for others the major difficulties were explained. KwaZulu Natal and Limpopo showed particularly low output; KwaZulu Natal had a target of 2 445 but only achieved 246, although this province had put in special capacity to try to drive the project forward. In Limpopo, out of the target of 4 250 the province had only managed to deliver 306 in the first quarter, with the main hindrances being the credibility of implementation plans and capacity, township proclamation and the transfer of state land.

There was a National Steering Committee that included representatives from the South African Local Government Association, NDHS, Metropolitans, Department of Rural Development and Land Reform (DRDLR), Department of Cooperative Governance and Traditional Affairs (COGTA), Black Conveyancers Association and others. The Estate Agency Affairs Board was driving the process. The Department had established institutional corrective measures for the problems identified, such as dispute resolution, state land transfer and rates and utilities clearance. The Department had proposed that the metros should ring-fence the Urban Settlement Development Grant and it had conducted consultations with the provinces that are performing poorly.

Some Members were not convinced on the numbers presented, or the process followed, and questioned whether this report was a true picture of the pre-1994 backlog. They suggested that officials did not seem to be working as they should and were possibly tackling this in the wrong way. One Member believed that the task should not be as difficult as it was being made out, and that it would have been easy for the Department to hire more black lawyers many years ago. He felt the report was not acceptable and that a clear list of tasks was needed. Other Members asked for clarity on the figures for the targets, the purpose of ring-fencing the grant, and how the Department was working with municipalities and provinces. Members commented that the non-issuance of title deeds was affecting the dignity of the owners, and preventing them from taking out insurance, or passing on clear title. They asked that provincial governments should also be reporting to the Committee, questioned why it seemed so difficult for the Department of Rural Development and Land Reform to work with the Committee, and whether the land use legislation passed recently was helping or hindering the position, and why it was seemingly so hard for the agreements to be finalised. Members suggested that more visibility for the EAAB was needed in the provinces and asked if the dashboard could be made available to the Committee.  
 

Meeting report

Title Deeds backlog: Progress report by Department of Human Settlements (DHS)
Mr Bryan Chaplog, Chief Executive Officer, Estate Agency Affairs Board, speaking on behalf of the Department of Human Settlements (DHS or the Department) briefed the Committee on the progress towards eradicating the backlog in the title deeds at the Deeds Office. This backlog was a historical and current matter. Pre-1994 there were 83 628 title deeds in the backlog, and post 1994 there were 734 429 backlogs. The target for eradicating the pre-1994 backlog in the 2014/15 2015/16 year is 14 370, and the post-1994 target is 102 746. The title deeds eradication target for the 2016/17 year is 332 789 but the actual output, as of March 2016, is 170 887.

He reported that between the 2014 and 2017 financial years, there was a backlog of 818 262, across all nine provinces. In 2014/15 the Department managed to deliver 57 060 title deeds. For the 2015/16 year the target was to eradicate 68 083 from the backlog, of which the Department achieved the eradication of 60 056. The provinces that had exceeded their targets were Gauteng, Northern Cape and the Western Cape.

The causal factors for the backlog included the establishment of townships and proclamations, delays in conveyancing, project management, institutional relationships and land legal matters. There have been delays with the registration of new townships, the issuing of clearance of certificates and collection of documents, and the vesting and transfer of state land.

The delivery of title deeds for the 2016/17 was standing at 207 146, and this includes a stock of the pre-1994 and post 1994 backlog. The Department was ready for this financial year, as much of the work will be driven in-house, with the provincial departments and metro municipalities. All the provincial offices had appointed additional capacity to assist with the implementation of the eradication project, having appointed several conveyancers, planners and social facilitators.

The Nelson Mandela Bay Metro and Limpopo were drawing from the National Department panel of Professional Resource Teams to undertake specific work related to township establishment and property ownership. Overall, 60% of the planned targets for all nine provinces have been achieved for the first quarter of 2016/17. The total target for the first quarter was 32 997 but the actual output was 20 113. However, a backlog of 137 229 has been eradicated for the first quarter. Only three provinces, Eastern Cape, Free State and the Northern Cape, have exceeded their targets for the first quarter.

The state of readiness for each province had also been included in the report. The targets and outputs for the first quarter of each province for pre-1994 and post 1994 were listed.

- Eastern Cape had a target of 5 043 and the output was 7 835. Although the province did not manage to exceed its target in the first quarter for pre-1994, it managed to reach the target in the second quarter. The major cause of the backlog problem was related to beneficiary occupation confirmation.
- Free State had a target of 2 450 with an actual output of 3 037. The overall delivery is 10%, which is almost 34% of the pre-1994 stock registered.
- Gauteng province had a target of 8 616 and the actual output was 2 216. 40% of the pre-1994 stock was delivered and there are plans in place to eradicate the remaining 7 000 in the 2016/17 year. The province has established a dedication directorate to deal with the registration backlog in the province, along with an appointed panel of conveyancers and external service providers.
- KwaZulu-Natal had a target of 2 445 but the actual output was 236. Only 5% of the backlog has been delivered, with some 11% to be delivered in 2016/17. The province has placed resources dedicated to capacity within its provincial offices for the remainder of the Medium Term Strategic Framework (MTSF) period, to drive the project to conclusion.
- In Limpopo, delivery figures for title deeds were cause for worry. Out of the target of 4 250 the province had only managed to deliver 306 in the first quarter. The main issues hindering delivery here were related to the credibility of implementation plans and capacity, township proclamation and the transfer of state land.
- Western Cape had implemented the eradication project in-house, with the support of municipalities, while the Metro also had a dedicated team dealing with the registration backlog. The target for the province was 2 818 and the actual output was 730. The total eradication of the backlog for the actual land that belongs to the state for the first quarter is 137 229.

Mr Chaplog noted that the National Steering Committee, which supports the national Department with the implementation of the eradication project, includes representatives from the South African Local Government Association, the national DHS, Metros, Department of Rural Development and Land Reform (DRDLR), Department of Cooperative Governance and Traditional Affairs (COGTA), and Black Conveyancers Association. The Department has also developed a dashboard to oversee the current and future progress of the eradication project. The Department has established institutional corrective measures for the problems identified, such as dispute resolution, state land transfer and rates and utilities clearance. The Department is currently preparing proposals for the consideration of the corrective measures.

He concluded by saying the overall accountability lies with the Minister and NDHS, but in support of the project the Estate Agency Affairs Board (EAAB) has made project management and secretariat support available. There is a pending Implementation Protocol Agreement between the Department and the EAAB. He recommended and reminded the Committee that the Department had proposed that the metropolitan municipalities should ring-fence the Urban Settlement Development Grant (USDG) funding, in order to co-fund the eradication programme in their areas. The Department is conducting consultations with the provinces that are performing poorly with the objective of making interventions to improve their performance.

Discussion
Mr H Memezi (ANC) said that Mr Chaplog sounded very convincing, but he was not yet convinced about the numbers that Mr Chaplog had given the Committee. He did not believe that the report was credible or was a true picture of the pre-1994 backlogs. The government officials did not seem to be doing their work and he had the sense that they were also going in the wrong direction for resolving the backlog. He said that it was not hard to resolve the backlogs but the Department was making it look very difficult. He believed that the problems the Department had listed should not even form part of the report because they should not have existed in the first place. The supposed lack of conveyors should have also been dealt with long before the Department created the project through the Agency, as there were many black lawyers from the disadvantaged communities who could have been employed by the Department to make the title deeds process smoother. The Department should use this opportunity to empower lawyers from disadvantaged communities. He concluded by saying that the report is not acceptable, and suggested that the Department must draw up a clear ‘to-do-list’ of its priorities and how it intended to achieve each priority.

Mr S Gana (DA) said the Department had listed two targets for the title deeds restoration – mentioning both a figure of 207 146 and another of 137 229; he asked which target is the correct one for the 2016/17 year. He asked whether the recommendation to ring-fence the Urban Settlements Development Grant would be used for capacity purposes, or whether it would form part of the replacement of the capacity grant. If so, what percentage was it proposing should be taken from the USDG for municipalities? He enquired if the Department was working with local municipalities, or whether it was only partnering with the provincial governments.

Mr L Khoarai (ANC) said that in the previous week the Department said the issue regarding title deeds was becoming worse, but the report that the Department had presented now seemed to suggest that there is no problem with the restoration of title deeds. He asked when the Committee would receive the proposals on the institutional corrective measures. He added that the normal legal process for the issuing of title deeds usually follows after the issuing of houses, and the Department does not seem to be following this legal process.

Ms L Mngaga-Gcabashe (ANC) said the problem with the late issuing of title deeds is only affecting black people. Their dignity is being disrespected by this problem, and that needs to be restored. Many black people are unable to take out insurance on their property because the banks require a title deed This also creates further issues when the owner of the houses passes away without receiving their title deed and the siblings fight over the ownership of the house. The backlog of title deeds in the metropolitan areas of Gauteng, KwaZulu-Natal and Eastern Cape, as well as the large townships in Mpumalanga, was becoming problematic because the backlog numbers seem to be growing each year. She proposed that the provincial governments must also report to the Committee on the progress in trying to eradicate the backlog. She asked why there is no target for the eradication of the backlog for the Western Cape Province and how then the Department would measure their output. She also wanted to know why it was seemingly so difficult for the Department of Rural Development and Land Reform to work with the DHS to eradicate the backlog. She concluded by asking the Department to unpack how the USDG would be used to improve the work of the municipalities.  At the moment some metros were using the grant incorrectly by spending it on expenses for which the grant was not intended.

The Chairperson said there are many other departments that are part of the National Steering Committee, one of them being the Department of Rural Development and Land Reform. The government introduced two policies, the Spatial Planning and Land Use Management Act (SPLUMA), 2013 and the Deeds Registries Amendment Bill, 2016, which were meant to make the issuing of title deeds easier, but she asked whether they had in fact made any difference. The pending protocol agreement between the DHS and the EAAB should be at its implementation stage already and this was something that the Committee would need to look into. She asked how the Committee can help to make the process of the protocol agreement move faster, why it was difficult for the Department and EAAB to finalise the agreement and how the pending protocol agreement was affecting other areas. She asked if the Committee should also be concerned whether it would also be difficult for the Agency to form protocol agreements with other departments. She was also worried about the fact that the EAAB does not have branches in all nine provinces, as she felt it important for the EAAB to have more visibility and be seen to be actively addressing the problem with the backlog of title deeds across all nine provinces. At a previous meeting, the Director General had also mentioned one proposal to use the USDG to capacitate the municipalities, and this same matter was being brought up in this meeting. The Department should have already submitted a proposal for this request, and it sounded as if this matter is going to be another white elephant.

Mr Chaplog replied that there were houses that were built on land which did not belong to the government, but were partly state owned and privately owned. The Department of Rural Development and Land Reform should also play its role in this matter, because it had delayed the issuing of title deeds. Once the ownership of the land had been transferred into the hands of the government, most of the title deeds could be issued to the owners. The other problem that the Department had faced was the merger of municipalities. Some municipalities had in the past merged and failed to inform the Department about the merger. Once the merger had happened, the number of title deeds beneficiaries would then change.

He explained that the target of 207 146 is allocated for the whole year, while the target of 137 229 was a target only for the first quarter of the 2016/17 financial year. The presentation is very much rooted in a snapshot of July 2014. The DHS is trying to eradicate the 818 057 backlog, and as such the presentation had not covered any future concepts of the programme. He agreed with the Committee that the dignity of black people had to be restored, and he recognised that the EAAB played a major role in restoring that dignity. The EAAB is part of a process that seeks to modernise the system that deals with the issuing of title deeds. The two pieces of legislation have indeed made the work of the Department easier in the working together with other departments and developing new systems.

The proposed usage of the USDG will be for the delivery of title deeds only. Most provinces have made commitments that their backlogs would be eradicated by the year 2017. Western Cape Province was not able to indicate its target as there were sometimes delays between the municipalities. However, now that there was better access to the Department of Public Works, it was believed that collaboration would be better. Although the protocol agreement had been pending for months, the EAAB did not require a contract to do its work. The EAAB is also in the process of opening offices in the other provinces to make them accessible to the communities.

Mr Neville Chainee, Deputy Director General: Strategy and Planning, DHS, said that this should not be an excuse, but the Department had inherited many of the backlogs from the pre-1994 government. He told the Committee that the municipalities would not be able to deal with the backlog alone, and it should be the responsibility of the national Department. The target of 207 246 was set by the Department, with the help of all nine provinces. The minutes of the meeting for the National Steering Committee were available, if the Committee would like to see a copy of what had been discussed during the meetings. He added that the meetings were often chaired by the Director General.

The point about the USDG is that it covered human settlements. There were substantial numbers of houses that were upgraded in informal settlements, then township establishments, and the related processes around providing security of tenure fell to those metros. This was not a process which required a huge amount of money. He thought that it might cost a maximum of around R2 000 to fix the problem. The Protocol Agreement is an administrative matter, which should provide the financial arrangements and compliance between the Department and the EAAB. However, the EAAB has legally taken up its rightful position, with the different projects and responsibility for the issuing of the title deeds. Also, both the Department and the EAAB will be monitoring the process. He said that the Department does not have faith in the Limpopo and Gauteng province, and Gauteng’s Head of Department (HOD) was honest enough to ask the Department to intervene. The Department has also developed a dashboard that will allow it to evaluate the progress made on the delivery of title deeds in the provinces.

The Chairperson asked whether the Committee can see the dashboard.

Mr Chainee replied that the dashboard will cover some of the concerns that were raised by Mr Memezi regarding the credibility of the numbers given.

Mr Chaplog said the dashboard includes sections that indicated the number of instructions that had been uploaded from the province to the system, the number of instructions that had been accepted, the rates clearance position and whether documents had been logged. It also showed when the transfer of duties had been paid, when the documents were registered and when the titles had been logged to the attorney and when they are sent back to the Deeds Office.

Mr Anton Arendse, Business Operations Executive, EAAB, added that the dashboard will be able to record the actual registration of the title deeds. The dashboard will be able to indicate what the provinces have delivered, against what the provinces claimed to have delivered. Also, six new conveyancers had been appointed to help deal with the issuing of title deeds in the provinces. Using the Northern Cape as an example, he cited that it had issued 4 223 instructions in the 2016/17 financial year to conveyancers. The target for the Northern Cape was over 7 000 and the snapshot of delivery to date indicates reasonable confidence that Northern Cape will make the target of 7 000. Almost 66% of the projects it promised to deliver have been communicated to the conveyancers. The dashboard also indicates the number of instructions that conveyancers have accepted.

The Chairperson concluded that there will always be a problem with backlogs of the title deeds and the Committee is entitled to ask questions relating to the process and progress of how far the Department had gone to eradicate the backlog. She reminded the Committee Members of a meeting scheduled for the following day, with the Limpopo and Gauteng provincial departments, to cover the same issues discussed at the meeting today. The provinces will have an opportunity to give an overview of the progress that they have made with the eradication project. She thanked the Department for the precise presentation.

The meeting was adjourned. 

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